ISLAMABAD: The Pakistan government is preparing for uniform gas tariff from July 2027, ARY News reported on Tuesday, citing well-placed sources.
Sources said the move is being taken to fulfill another condition linked to its International Monetary Fund (IMF) programme. The Petroleum Division is working on a plan to abolish the existing cross-subsidy mechanism for gas consumers.
They further said the Pakistan government is preparing to introduce a uniform gas tariff across the country, replacing the current system of 12 consumer slabs.
The Petroleum Division has completed its working on the proposed uniform tariff mechanism, which will be presented to the IMF for approval, sources said.
Under the proposed system, the existing cross-subsidy of Rs162 billion would be eliminated, while gas subsidies would be linked to household income rather than consumption, according to Petroleum Division sources.
Read more: Lundali-1 gas well in Sindh starts commercial gas production
Low-income gas consumers would receive financial assistance through the Benazir Income Support Programme (BISP), sources said.
The Petroleum Division has proposed setting an average gas tariff of Rs1,708 per million British thermal units (MMBtu) for all consumers. The new uniform tariff system is proposed to take effect from July 1, 2027.
Under the proposed mechanism, consumers would no longer receive a lower gas tariff simply for using less gas, sources said.
The proposed system is also expected to provide tariff relief to industrial and commercial gas consumers, according to sources.
Petroleum Division officials said the objective of the proposed reform is to ensure that subsidies are delivered transparently to those who are genuinely entitled to receive them.
